{"id":73997,"date":"2023-02-13T13:56:27","date_gmt":"2023-02-13T11:56:27","guid":{"rendered":"https:\/\/forklog.com\/en\/?p=73997"},"modified":"2025-09-09T17:38:37","modified_gmt":"2025-09-09T14:38:37","slug":"bnb-falls-on-news-of-the-secs-claims-against-paxos","status":"publish","type":"post","link":"https:\/\/u1f987.com\/en\/bnb-falls-on-news-of-the-secs-claims-against-paxos\/","title":{"rendered":"BNB falls on news of the SEC&#8217;s claims against Paxos"},"content":{"rendered":"<p>The price of Binance&#8217;s BNB token fell by almost 6% amid news of the <span data-descr=\\\"U.S. Securities and Exchange Commission\\\" class=\\\"old_tooltip\\\">SEC<\/span>&#8216;s interest in the BUSD stablecoin and its issuer Paxos.<\/p>\n<p>\\n\\n\\n\\n<\/p>\n<figure class=\\\"wp-block-image\\\"><img decoding=\\\"async\\\" src=\\\"https:\/\/lh3.googleusercontent.com\/TaqwQt0Iuf-x4IMQEclcU7ZEtzUmWtcgcg7qlhVjUBwVN4KbwPLH5jwrDTCtUhrE6z3-UrBTaiqrQdG1iVu83NebP7HoGoft1Qlz5MF6y3OQyr4tq941cpMruvJqjQsqpykfq7gP5gJeEt0sOE4yoH4\\\" alt=\\\"BNB \u0443\u043f\u0430\u043b \u043d\u0430 \u0444\u043e\u043d\u0435 \u043d\u043e\u0432\u043e\u0441\u0442\u0435\u0439 \u043e \u043f\u0440\u0435\u0442\u0435\u043d\u0437\u0438\u044f\u0445 SEC \u043a Paxos\\\"\/><figcaption>Data: <a href=\\\"https:\/\/www.coingecko.com\/\\\">CoinGecko<\/a>.<\/figcaption><\/figure>\n<p>\\n\\n\\n\\n<\/p>\n<p>Earlier, The Wall Street Journal <a href=\"https:\/\/u1f987.com\/en\/news\/sec-warns-paxos-of-enforcement-action-reports-say\">reported<\/a> that the regulator intends to sue the American company over its involvement in issuing BUSD.<\/p>\n<p>\\n\\n\\n\\n<\/p>\n<p>Founder and CEO of Binance, Changpeng Zhao, noted that Paxos operates the stablecoin independently. According to the company&#8217;s assurances, the coin is fully backed by reserves.<\/p>\n<p>\\n\\n\\n\\n<\/p>\n<blockquote class=\\\"twitter-tweet\\\" data-lang=\\\"en\\\">\n<p lang=\\\"en\\\" dir=\\\"ltr\\\"><a href=\\\"https:\/\/twitter.com\/hashtag\/BUSD?src=hash&#038;ref_src=twsrc%5Etfw\\\">#BUSD<\/a>. A thread. 1\/8<\/p>\n<p>In summary, BUSD is issued and redeemed by Paxos. And funds are <a href=\\\"https:\/\/twitter.com\/hashtag\/SAFU?src=hash&#038;ref_src=twsrc%5Etfw\\\">#SAFU<\/a>!<\/p>\n<p>\u2014 CZ \ud83d\udd36 Binance (@cz_binance) <a href=\\\"https:\/\/twitter.com\/cz_binance\/status\/1625067484368740353?ref_src=twsrc%5Etfw\\\">February 13, 2023<\/a><\/p><\/blockquote>\n<p> <script async src=\\\"https:\/\/platform.twitter.com\/widgets.js\\\" charset=\\\"utf-8\\\"><\/script>\\n\\n\\n\\n<\/p>\n<p>Regarding the regulator&#8217;s accusations of issuing unregistered securities in the form of BUSD, Zhao cited the opinion of Miles Deutscher. The analyst explicitly pointed out that investors could not have \u201can expectation of profit\u201d when buying a dollar-pegged coin contrary to the <a href=\\\"https:\/\/en.wikipedia.org\/wiki\/SEC_v._W._J._Howey_Co.\\\">Howey test<\/a>.<\/p>\n<p>\\n\\n\\n\\n<\/p>\n<blockquote class=\\\"twitter-tweet\\\" data-lang=\\\"en\\\">\n<p lang=\\\"en\\\" dir=\\\"ltr\\\">The SEC has labelled BUSD as an \u201cunregistered security\u201d, and is suing its issuer, Paxos. <\/p>\n<p>But how on earth is a STABLECOIN considered a security, when it clearly doesn\u2019t meet the Howey Test criteria. <\/p>\n<p>No one has ever had \u201cthe expectation of profit\u201d when buying <a href=\\\"https:\/\/twitter.com\/search?q=%24BUSD&#038;src=ctag&#038;ref_src=twsrc%5Etfw\\\">$BUSD<\/a>. <a href=\\\"https:\/\/t.co\/QXOlDUyvc3\\\">pic.twitter.com\/QXOlDUyvc3<\/a><\/p>\n<p>\u2014 Miles Deutscher (@milesdeutscher) <a href=\\\"https:\/\/twitter.com\/milesdeutscher\/status\/1624953792872718336?ref_src=twsrc%5Etfw\\\">February 13, 2023<\/a><\/p><\/blockquote>\n<p> <script async src=\\\"https:\/\/platform.twitter.com\/widgets.js\\\" charset=\\\"utf-8\\\"><\/script>\\n\\n\\n\\n<\/p>\n<p>PayPal <a href=\"https:\/\/u1f987.com\/en\/news\/bloomberg-reports-paypals-pause-in-developing-a-stablecoin\">paused<\/a> work on its own stablecoin amid news of an investigation into Paxos.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>The price of Binance&#8217;s BNB token fell by almost 6% amid news of the SEC&#8217;s interest in the BUSD stablecoin and its issuer Paxos.<\/p>\n","protected":false},"author":1,"featured_media":73998,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"select":"1","news_style_id":"1","cryptorium_level":"","_short_excerpt_text":"","creation_source":"","_metatest_mainpost_news_update":false,"footnotes":""},"categories":[3],"tags":[744,1307],"class_list":["post-73997","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news-and-analysis","tag-binance","tag-bnb-chain"],"aioseo_notices":[],"amp_enabled":true,"views":"24","promo_type":"1","layout_type":"1","short_excerpt":"","is_update":"","_links":{"self":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts\/73997","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/comments?post=73997"}],"version-history":[{"count":1,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts\/73997\/revisions"}],"predecessor-version":[{"id":73999,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts\/73997\/revisions\/73999"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/media\/73998"}],"wp:attachment":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/media?parent=73997"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/categories?post=73997"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/tags?post=73997"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}